VMware Purchases Nicira: Is It a Good Move?
It comes as a surprise to many that VMware is ready to embrace hypervisors and the cloud management competition but it is justified. VMware understands that if it wants to position itself as providers of intelligence in software defined datacenters, hypervisors need to be treated as workers that carry out the management layer commands. If it was only for creating Virtual Machines, then it could’ve continued with its conventional policies setting aside cloud based technologies and hypervisors.
A majority of the analysts have said that they are anxious to know how VMware would handle the open source environment given VMware’s reputation of being an evil empire. The organization is however committed to transform its image by embracing choices.
The deal, that includes a cash payment of $1.05 billion and approximately $210 million of assumed unvested equity awards is expected to take a final shape by the end of second half of this year.
VMware, it is said, is betting a lot on a more open, more heterogeneous and more virtualized future by paying more than a billion dollars for the deal but all these indications prevail that all these investments are going to pay off in no time and help VMware gain trust of the investors giving it a new standing in the market.
